Performance Management

The company has been in operation since 1 950 and serves more than 3 million customers ally, Its stores offer online order placement services and franchise options. The company’s stores provide a selection of cookies, bagels and sandwiches. Dunking’ Donuts also sells 52 varieties of donuts and more than a dozen coffee beverages. At the end of 2008 there were over 8,800 stores, Including 6,395 franchised restaurants in 34 united States and nearly 30 countries throughout the world.

In 2008 its sales revenue was approximately $5. 5 billion. The company uses performance management to manage employees performance and make pay decisions but, Just like most of the companies, Dunking Donuts doesn’t SE performance management to help manage talent through Identifying training needs and developing leadership talent. The company is not able to provide pay, rewards and development activities that differentiate excellent, average, and poor performers.

The brand Dunking’ Donuts is a coffee and doughnut franchise under the ownership and control by parent company Dunking’ Brands. Dunking’ Donuts was founded in of the snack food and beverage sector in the geographic region. Today, Dunking’ Donuts dominates the snack food sector and is making its mark on the coffee house sector not only in the U. S. , but across 30 countries world over (wunderkind’s. Com). Dunking’ Donuts is the world’s biggest coffee and baked goods chain, with more than 3 million customers daily.

In the p of the last decade, Dunking’ Donuts has produced a quality line of coffee blends and espresso drinks that have led to it achieving the number one spot in the US in coffee-by-the-cup sales (Bright Agency. 2006). To build strong, profitable, long-term customer relationships, Dunk’s Donuts has developed marketing strategies and plans. The firm must determine how to best create value for its chosen target market. So, the firm should connect with his customers to establish and strengthen customer relationships.

If its website is any indication, Dunking’ Brands, which today has a portfolio of three implementers brands: Dunking’ Donuts, Tog’s (the California sandwich shop) and Basking-Robbins (the largest and one of the most-loved ice cream chains in the world), has no intention of abandoning its focus on high-quality, affordable food and beverages on the go. Each of their brands appeals to a different time of day, working together to offer great food and great value to their customers. The company combines the strength of its brands by housing two or three in a single storefront, completely redefining the quick service experience for their clientele.

With a focus on “how Dunking’ Donuts keeps busy Americans fueled and on the go… He ad campaign is a fun and often quirky celebration of life, showing Americans embracing their work, their play and everything in between, accompanied every step of the way by Dunking’ Donuts. ” Dunking Donuts’ focus on customer satisfaction is an attempt to keep the current customers and gain new ones. It tries to provide innovative products and services as opposed to their competitors. Apart from providing superior quality and innovative products, they also influence the market share by providing competitive prices.

So where the company is seems to be mistaken? Dunking Donuts is lacking on HRS Integration. The integration will link different aspects of human resources management, specially human resources development and rewards, to achieve a coherent approach to the management and development of people. The Human Resource department of an organization has multiple responsibilities. It is responsible for employee selection, development, evaluation, compensation and employee relations.

The role of Human Resource management is being increasingly affected and reshaped by the growing diversity of the workforce, global and domestic compensation, and complex legal and ethical issues. In short, the Human Resource organization it serves as well as the society in which it operates. In a short amount of time, Human Resources (HRS) management has gone from an administrative function to a fully fledged strategic partner in the enterprise. Many companies have completed this transition, but some companies still struggle with the changing duties of the modern HRS department.

HRS today encompasses much more than hiring, firing, and filling out benefits forms. Some of the responsibilities of HRS now include (Evangelic, 2001, p. 5), Equal employment opportunity (EWE) compliance. Job Analysis. Human resource planning. Employee recruitment, selection, motivation, and orientation. Performance evaluation and compensation. Training and development. Labor relations. As a strategic partner in the organization, HRS has to change constantly to meet future trends, legal issues, and other threats and opportunities.

The responsibility for performing the HRS functions does not reside only in the HRS Department; all managers at all levels of the organization share in that responsibility. HRS staff designs HRS policies and procedures and the operating managers implement them. (Pitter Growler, 2006). We know that not every company will be large enough to have either a separate human resources department or one containing all of the personnel functions or areas of responsibility. Even some of the largest corporations are not necessarily structured in the same manner.

Nevertheless, similarities exist among organizations and thus it is possible to be specific about the essential functions in which every human resource department should be involved. On the particular situation, the Dunking Donuts owner and operator have twelve locations with one Personnel Manager and one Office Manager. The Job of the Personnel Manager includes a variety of other duties in addition to HRS, including the supervision of the bookkeeping, payroll, hiring, sales, and clerical functions. The Office Manager is the owner.

A local council has just received approval for £15 million from the National Lottery to build a new Arts, Media and Cultural Centre but it needs to find the matching capital Money for the project. It has also to find the annual running costs of £1 million for the new facility at the same sound as it needs to reduce its total Leisure and Arts budget by £5 million.

How can performance management and review processes assist with this complex decision and ensure that effective delivery of the project if agreed?

The local council has three main problems to resolve from this scenario. These are:

1. Matching the capital money and running costs of the proposed project.

2. Significantly reducing the leisure and arts budget, the sector in which the proposed project is in.

3. Keeping all major interest groups internally and externally from the project, relatively content.

However, the problems involving the interest groups are virtually impossible to resolve. This is due to people’s contradicting needs; this creates the task of catering for each individual group”s needs, which is unobtainable. Therefore, the council must take an interest in the most significant party, the public; this includes the implications of the other major problems.

Performance management and review can be an aid to this project, by analysing the various options and solutions and deciding on the best course of action. Each of the three main problems may be divided into a list containing various sub problems, which create the overall problems. Each of these problems must be solved by prioritising in order of importance, in order to produce the most effective solution to the project.

Performance management has been defined as “a strategic and integrated approach to delivering sustained success to organisations by improving the performance of the people who work in them and by developing the capabilities of teams and individual contributors: (Armstrong and Baron 1998). Another definition however is that performance management is the systematic design, collection, analysis and review of information. In order to manage there is a need to establish and quantify what may be managed and how.

For the ability to use performance management within the project, it needs to be segmented into various sections that can possibly be measured over the duration of the project. The project has multiple objectives that need defining. These objectives are usually defined and the outcomes normally judged using the five E”s:

Economy: The effective acquisition of inputs, largely a value for money concept.

Efficiency: The ratio of inputs to outputs. The efficiency level will be increased if the output is consistent while input levels fall, or output is raised while input while input remains consistent.

Effectiveness: The extent of goal acheivement

Equity: Observance of criteria of fairnesss. This is probably the most significant condition for good performance.

Electability: Political affirmation of good performance that will prove essential for survival.

These five factors aid in providing parameters for judging performance.

To enable measurements of the performance, the project needs to be subdivided into various sections known as milestones. To achieve the various milestones, the manager will need to create an action plan. This is a breakdown of what, where and when various activities are going to occur.

There are many problems associated with public sector performance management. Some of these problems are as follows:

There are not enough targets to attain.

There tends to be too many indicators.

There is a lethargic reporting style, however the reporting systems tend to be loose.

In the case of this project for the local council there needs to be a hierarchy of objectives, these must range from corporate to individual objectives.

The corporate objectives for the local council may be as follows:

1. To design, build and tender for the centre within the budget allocated and within any time frame allocated by the capital provider.

2. To allocate appropriate funds from the local authority budget to enable the project for the centre to proceed.

3. To increase, restructure or divert the revenue budgets of the local authority to accommodate the running of the centre.

The examples of the objectives above are broad in context. This is deliberately to enable any changes through revenue and allocations of funds to the centre to be accommodated for within the objectives. There may be political issues involved within the development of obtaining these major corporate objectives. These may include the raising of tax, the proposed centre having to match the running costs or possibly the allocation of funds from other local authority departments. These objectives are not as narrowly defined as those from the private sector or if it were a PFI (Private Finance Initiative) project, this is due to the need to insure that all stakeholders may be taken into consideration.

Although these objectives are corporate, they usually are allocated to an individual to oversee. This method within the public sector could cause problems within the board; these problems are due to the possibility of one-upmanship.

Within the local authority, there are other objectives which must be satisfied, these link and are interdependent with the corporate objectives.

An example may be that the Arts and Leisure Director needs to set out his objectives for achieving the design and building requirements. Example – Objective Carry out the Tender procedure within 6 months: –

Activity or milestone Action Deadline

A. Appoint Consultant By End of Month 1

B. Approve Budget By Start of Month 2

C. Finalise Design By End of Month 2

D. Send spending specification By Start of Month 3

E. Evaluate Tenders By End of Month 4

F. Appoint Contract By End of Month 5

G. Complete Contract By End of Month 6

The Milestones are time related, they can be measured and if slippage occurs, action can be taken to bring the plan back on schedule or negotiations can take place to approve an extension.

Another example may be that of the Director of Finance or the treasurer’s objective, such as the following:

1. Reassign budget areas and make alterations to the allocations Negotiate the Leisure and Arts Budget.

2. Reallocate revenues for the proposed Leisure and Arts centre for the first year of opening.

3. Construct and consider various options for revenue generation to support the running costs of the proposed facility.

Each of these objectives would have numerous milestones, which would be addressed in order to achieve the set objective goals.

The objectives and milestones flow down the organisation, each linking into the one higher up the pyramid.

The objectives set need to be linked to a review process. This is a crucial tool in timing strategic argument into practical actions – a lever to effectively policy implementation.

To ensure our employees are engaged in helping our organization achieve its goals, we adhere to a performance management process that helps employees connect their on the-job performance with the broader organizational strategy. This process is designed to foster open, frequent discussions between employees and their managers to ensure individual development and success. The process includes objectives setting, performance assessment, regular and ongoing feedback, and development planning.

We have a “balanced scorecard” approach to performance management, which includes balanced performance assessments for the senior management team. This approach helps management focus on achieving a balance of financial, operational, customer and employee results. Employee indicators measured with the balanced scorecard include workplace diversity targets, turnover rates and employee satisfaction levels. During the year, we also increased our emphasis on employee development and the use of informal feedback and coaching. Learning and development programs

Learning and development are important aspects of our overall corporate culture. Not only do they equip employees with the skills and knowledge they need to help our customers become financially better off, these programs also support a positive work environment by empowering employees to grow and advance in their careers. We provide an extensive range of internal and external courses through a combination of classroom, web-based, and self-study formats, plus we also support informal development activities, including coaching, mentoring and networking.

Domestically, we spent approximately $60 million on training in 2005, roughly $2,100 per employee – and nearly 28,000 Canadian employees completed a variety of internal and external courses. Also during the past year, we further enhanced My Learning Centre, our web-based learning management system that gives employees access to training information and courses from anywhere at anytime. We made this system accessible to more areas of the Bank, reaching an additional 7,500 employees. Read about Pros and cons of on the job training

For the second year in a row, we were selected by Training magazine as one of the top 100 training companies in the world. The award recognized the programs, policies, and metrics that support our commitment to learning and development. Scotiabank was ranked 71, the second-highest ranking received by a Canadian bank. Developing leadership capabilities In the coming years, major employers such as Scotiabank must be prepared to face the issue of aging workforce populations.

In fact, Statistics Canada estimates that the working-age population will decline steadily in the 2010s and 2020s. To help us meet these demographic challenges and build the Bank of the future, we have implemented a number of leadership programs to develop the Bank’s talent pool. These leadership development programs balance formal, informal, internal and external support, plus experience-based learning and cross collaboration throughout the organization.

Hotel in Colorado Springs is in demand for seasonal workers when summer arrives. Unfortunately, the demands vs. supply of available workers are slim to none. Students are looking for “internships or jobs related to their career plan. ” Since these companies are not able to fill all available seasonal positions with H-2B visa workers, what other opportunities are available?

Also included are a reflection of additional options, and other recruiting strategies available to these companies. It is unfortunate to see local students wanting to move away because they are not interested in the opportunities around them. If Broadmoor’s and High Sierra Pools are unable to fill all available positions with H-2b workers, they will need to fill those positions in a timely fashion. Both companies should begin with forecasting; which is “the attempts to determine the supply of and demand for various types of human resources to predict the areas within the organization where there will be labor shortages or surpluses.

By forecasting as the first step the companies can figure out exactly how many positions need to be filled. Some potential options for these company’s would be outsourcing, allowing overtime, hiring temporary contracted employees, and also improving technological equipment to assist in some positions within the company. Many of the ideas listed above could assist both companies recover from the inability to hire H-2B workers.

I personally would start by looking to outsource the company’s seasonal postions. Outsourcing is defined as “Contracting with another organization to perform a broad set of services” (Noe, Hollenbeck, Gerhart, & Wright, 2009). By having a group of trained professional’s to come in and work as independent contractors (IC) hired on a seasonal contract this would save time and hassle as well as a lot of money. Because these IC’s do not have employee status they do not qualify for benefits such as insurance and 401K plans.

Another option would be to allow overtime to all employees who were interested in working or switch them from an hourly position to a salaried position so they could willingly earn more money by working more hours. The companies would not have to spend and waste money on training, interviewing, and more employees. High Sierra pools is in desperate need to hire a staff load of seasonal employees. They could push recruiting by possibly adding incentives such as an employee referral bonus. This way both parties aka employee/trainee would receive a bonus.

They could also incorporate there job listing to many major websites such as Monster, Craigslist, and Jobs. com. This would help them if they decided to bring on more employees. If High Sierra pools did not want to hire more people but needed to get work done they should allow employee to either A: switch to salary pay or B: allow overtime. This way they could utilize all employees available to the fullest. It is often hard to get accepted as an employer to gain access to H-2B workers. H-2B workers are only available until the cap of 66,000 is met each fiscal year according to the U. S. Citizenship and Immigration Services (USCIS, 2012).

Split in half for each half of the year, the hiring abilities is on a first come first serve basis. High Sierra Pools and Broadmoor’s have many different options available to find other ways to fill employee positions. Outsourcing would be one of the most convenient ways to take care of this because they would be doing the same thing if they hired foreign workers.

References

1. Noe, R. , Hollenbeck, J. , Gerhart, B. , & Wright, P. (2009). Fundamentals of human resource management, 3rd edition. New York, NY: McGraw-Hill/Irwin.
2. USCIS. (2012, October 01). U. S. citizenship and immigration services. Retrieved from http://www. uscis. gov

Did you know that according to the World Investment Report in 2009, published by the United Nations Conference on Trade and Development (UNCERTAIN there was a total of 889,416 multinational companies around the world. Http:/Ft. WV. Numbered. Net. ‘numberÂCfOffcC#Unmans#1026;lnвLen#1026;the-world/ http:// That means that there is a lot of corporations out there that operate in multiple countries. So how can one corporation achieve that competitive edge over the others?

Research suggests that in order to Increase our competitiveness In world markets, we must make a greater effort to increase the productivity of our workplaces by making more effective use of our existing human and material resources to reduce costs and prices (Smith, 1967). A high performance level Is maintained in leading companies in many Industries by applying purposeful management techniques which have been tried and proved. This is where performance management comes in.

Ferreira and Otley (2Outletterm performance management as the assembly of procedures that define, control and manage both the achievement of outcomes as well as the means used to achieve these results at an organisaorganizationalIs It viable however to use the same practices and procedures that you would use in a domestic company in a multinational corporation? Yes, in some aspects, but managing international performance is on an entire different level.

Roure, ARouéz,Olivarez-pont & NPont (1Noonestablished that In international organisaorganizationscial distance generated y different cultures, backgrounds, careers and experiences of the staff, Is intensified by physical distance, which makes managerial performance extremely difficult. 1 OF3 of tOFF presentation is to demonstrate to you all that it is imperative for managers to have in international perspective when dealing with performance in a global context.

And like, Dowling, Festing Fisting (2013) emphasize, one of the significant elements in the system of a multinational firm is monitoring performance and ensuring conformity to agreed-upon standards. BRUMBACKBAREBACK11). Performance management fundamentals. Industrial and Organizational Psychology, 4(2), 182-183. (1993). Managing internationally: International dimensions of the managerial task. European Management journal, 1 1(4), 485-492. Ferreira and Otley, 2Outlet. Ferreira, D.

Otley ThOutletign and Use of Performance Management Systems: An Extended Framework for Analysis Management Accounting Research, 20 (2009), pp. 263-up2 Dowling, P. J. , Festing,Fistingngle snr, A. sin(2013) International Human Resource Management: Managing People in a Multinational context. 6th edit6th. Thomson, Melbourne. smith, VSmith67). PERFORMANCE MANAGEMENT. Management DectstonDetection42. Brief overview of the company we have chosen – how many countries its located in? – why it is a global company? – some challenges its facing?

Try use references where possible, maybe find some Journal articles on benefits of going global and try link it in with the companies objectives etc. (also use quotes from the company website) 3 Brief discussion of why international performance management is important (references! ) What are challenges of performance management internationally? E. g. non-cGmpNonble data, the volatility of global environment, effect of distance/time, level of maturity, legal compliance etc. use refeUseces) Go into detail of some examples of challenges our chosen company may face? Diversity in cultures, production and operations, geographical dispersal all combine to make performance management processes that are simultaneously locally relevant and globally comparable a major challenge for human resource managers. ” P. 1 51 -Text book 4 How performance management can be used as a control mechanism to respond to these challenges? E. g. host GnvHostment, cultural adjustment, headquarters support, appraisal etc. International practices companies can use to manage performance(references!

Practices that are used by our chosen company 5 Overview of performance appraisal and its importance in successfully managing performance internationally, talk about theory and use references!! Issues relating to performance appraisal of employees in international companies Link theory with Summary and conclusion Appraisal Managers should appraise the performance of their employees and, more importantly, identify the individual’s potential for success in a more seasoned way. Therefore, any differences in the way managers interpret, appraise and respond to the performance of their subordinates should be eliminated.

Performance management is a process to ensure that the employees are contributing toward the overall goals of the organization. Performance management has around three phases like goal setting, dialogue and a method for evaluating the employees. In order to have an effective performance management the organization can implement various components of performance management like training, appraisal system and remuneration.

In short effective performance management means that the organization is achieving its goals in an efficient and effective manner. Task 1 Performance management Performance management is actually a management process for ensuring that employees are focusing their work efforts in ways that contribute to achieving the firm’s mission. In order to have an effective performance management the firm or the senior managers of the firm should divide performance management in the following phases.

Firstly, they should set their own expectations for employee performance, secondly they should maintain a dialogue between them and their subordinates so as to keep their performance on track and thirdly they should measure the actual performance of their subordinates with their performance expectations so as to have a reasonable and unbiased evaluation of their employees. The general definition of performance management and its phases can be applied to the given case study as well for suggesting some proposals for change to the senior management at Western Savings and Loan Bank.

From the example of an employee at Western Savings, Ms Charlene, it is quite clear that the employees are in fact are not focusing their work efforts so as to achieve the overall goal of the organization which is to provide mortgage loans to their customers and to act as a secure and reliable saving institution. In other words this shows that the senior managers or executives are in fact not successful in goal setting and goal clarification which is the most basic ingredient or phase of performance management.

The managers at western savings need to properly identify what they want from their subordinates or what their expectations are from them. Not doing so have resulted in employees like Ms Charlene committing costly mistakes which could have been prevented. Therefore, the first and foremost suggestion for the senior managers at Western savings would be to properly identify and explain to their subordinates what they expect from them, what are their responsibilities and how they can help the organization in achieving its overall goals.

Another area or phase of performance management which needs to be improved is communication. This area is mentioned at the beginning of the write up and is referred to as the ‘second phase’ of performance management. The second phase of performance management deals with maintaining a dialogue between the managers and his/her subordinates. Good, frank and candid communication between a manager and his subordinates is necessary so as to make sure that the employees or the subordinates of a particular manager are working on the ‘right’ track.

The case study seems to suggest that there is a culture of very weak communication between a manager and his subordinate. When Ms Terri tried to have an honest and frank communication with Ms Catherine in order to understand why she was not behaving responsibly, Ms Catherine didn’t open up. Therefore, in order to make sure there is effective performance management in the organization the organization needs to promote a culture where there is frank communication between a manager and his/her subordinates.

Good communication will help in effective performance management by allowing both the manager and his subordinates understand the problems, responsibilities and limitations of each other. Moreover, this will also allow the managers to take any corrective measures so as to ensure that the employees are working on the right track. The third phase of performance management deals with comparing the actual performance of the employee with the expected performance and then taking corrective measures if the actual performance is below the expected performance.

The last phase of performance management has implications for western savings as well. From the case study it is clear that even though the actual performance of Ms Catherine was measured against the expected performance which was far above her actual performance no corrective measure were taken. In fact according to the case study Ms Catherine was promoted and given other incentives simply because the employees who were responsible for evaluating her were afraid she might file a suit for discrimination against them.

In such cases where there is a fear of being sued for discrimination the managers should document all the errors committed by their subordinates and then take any corrective measures such as firing, demoting and transferring a particular employee. Unfortunately, this was not the case in this organization since there was no documentation done prior to the evaluation of an employee.

Therefore, it should be mandatory upon all the managers to document the errors or felonies committed by their subordinates then compare the actual performance with the expected performance and if the actual performance is below the expected performance then they should take some corrective measures. Moreover, the organization should also try to develop a procedure for addressing employee performance that falls below expectations. This will facilitate and help the employees to take corrective measures if their subordinate’s performance is below the expected performance.

Components of performance management In order to execute performance management in all the phases successfully it is necessary for the organization to understand the various components of performance. The components of performance management act as tools for implementing a successful performance management plan in an organization. The following are the various tools of performance management which can be utilized by Western Savings and loans bank so as to have an effective performance management system in their organization.

Training Training of the employees at various levels is very crucial for successful implementation of performance management system in any organization. Training is important for both the organization and the employees. It makes sure that the employees are performing work that is required from them and they are successfully performing their roles. If the employees are not performing their required roles they can be given instructions and advice in a training session so as to improve their current role.

Training also helps to identify those employees who cannot perform their current role and thus needs to be given another role. The case study does not suggest that there is any in house training program in the organization for the employees. This is the reason why employees like Ms Catherine are committing mistakes which is damaging the image of the organization in the eyes of its customers. Therefore, the first and foremost task that this organization has is to introduce and implement an effective training program for its employees.

The training program can take various forms and it can include various subjects. If the organization feels that it can effectively manage a training program then it should consider an in-house training program. If the in-house training program is not suitable because of lack of trained personal for imparting training or resources then it should consider outsourcing its training program. Outsourcing the training program to a reputable firm would prove to be costly but it would be effective in training the employees so that they don’t commit mistakes which are costly in terms of the image of the organization.

Moreover, a training program should include various subjects and topics specific to employees who occupy a particular level in the organization. Firstly, it should include a refresher course for employees who have spent a certain number of years with the organization. This will help the employees to remain updated with the policies and goals of the organization. Moreover, this will also help them adapt to change because of any events occurring outside the organization which may have an impact on the operations of their organization.

Secondly, the training program should also include training the employee on particular or specific tasks. This will help in improving the overall productivity of the employees and help in reducing the errors or mistakes committed by employees like Ms Catherine. Thirdly, the training program should also shed some light on the rules and regulations of the organization and general company guidance. This area is important for Western savings because the case study seems to suggest that the employees are not aware of the rules of the organization or general employment rules.

For example, employees at Western savings did not take any corrective measures against Ms Catherine even though they knew that she was not performing well simply because they ‘felt’ that they might be labeled as discriminatory or biased if they do that. Therefore, if they would have been informed in a training program that it is necessary to document employee errors in such situations this would not have been the case. Appraisal system Another way for Western savings to improve performance management is by implementing an appraisal system. Appraisal systems are used to evaluate an employee by his/her senior on different tasks or abilities.

Appraisal systems are beneficial for both the employees and the organization. Appraisal systems are used to harness the abilities and the resources of employees by letting them know where they stand. It represents a good opportunity to discuss with individual employees their strengths and weaknesses and agree new aims and objectives with them. Businesses usually make use of appraisal systems within a few months of a new employee starting or changing role within the business. Western savings will receive innumerous benefits by implementing a performance appraisal system.

Firstly, employees over there will understand what work is expected of them and how their work fits into the wider aims of the business. Secondly, appraisal systems will give the senior managers in the organization a chance to coach the employee to develop needed skills and share their own personal experiences. Furthermore, this will allow the managers to learn new ideas and method of doing work from their employees as well. This might help managers like Ms Terri who have belongs to another department but have been placed in a ‘new’ department where work is done differently.

Remuneration Remuneration is the payment of monetary and non monetary benefits to the employees. Remuneration should always be followed by a fair and unbiased appraisal system; however this is not the case in a lot of organizations. The same is the case with Western savings which has resulted in payment of higher remuneration to employees who deserve to be penalized instead of being showered with rewards. Western savings can develop a simple structure of appraisal that would be tied to the performance of the employees.

However, even the best performance appraisal system in the world will not work if it is linked to a rewards and remuneration system that employees do not trust or support. Therefore it is important for the senior executives who develop a remuneration system to win the trust and support of the employees who would be rewarded based on the remuneration system they develop. If this is not the case then the employees will not be motivated to perform their work with due diligence and hence the productivity of the employees can never reach the optimum level.

An effective remuneration is beneficial for the organization in other ways as well. Firstly, an effective remuneration system will lead to decline in employee turnover rate. A lot of competent employees because of fierce competition and lack of fair rewards leave the organization. A fair remuneration system on which the employees have trust will lead to a substantial decline in the employee turnover rate which in turn will save the cost associated with training the new employees. Moreover, employees need not be remunerated by money alone. Some employees might be motivated to increase their productivity by non monetary benefits.

Therefore, western savings should make use of non monetary benefits like recognition and other incentives. From the case study it is clear that Ms Charlene was not motivated to perform well and increase her productivity even though the organization kept on increasing her salary. Therefore, the organization should try to rely on non monetary benefits so as to motivate and inspire such employees. Task 2 Recommendation of a Performance Appraisal System There are various appraisal systems available which help in doing the appraisal of an employee like Rating scales, Essays and MBO’s or management by objectives method.

All have their advantages and disadvantages but in the view of the writer Management by objectives method is the most suitable method for this organization. Both the rating scales method, in which the evaluator has to judge the performance of an employee relative to certain traits, and the essay method, in which the evaluator is free to write anything about the person being employed, have several disadvantages for this organization. In the rating method the manager might give distorted results because of perceptual errors or difficulty in assessing the traits of an employee.

Moreover, the essay method is time consuming and the writer might write comments which may have a negative impact on the performance of the employee. Therefore MBO method seems to be the suitable method for appraising an employee at Western savings. The following are the details about MBO method. MBO-Management by Objectives Management by objectives method were first advocated by the popular and distinguished theorist Peter Drucker MBO (management by objectives) methods of performance focus on the results instead on the traits or skills of the employees.

In other words they seek to measure employee performance by examining the extent to which predetermined work objectives have been met. In Management by objective method the objectives are established jointly by the supervisor and subordinate. For example, an objective for a sales employee at Western Savings might be: Increase the gross monthly sales volume to $250,000 by 30 June. As soon as the objectives are set the employee is usually expected to do some self analysis that is, he/she needs to identify the skills needed to achieve the objectives.

Contrary to rating method they do not rely on others to locate and specify their strengths and weaknesses. They are expected to monitor their own development and progress. There are several advantages of MBO method for Western savings some of them are as follows Advantages The MBO approach will overcome the problems that may arise as a result of assuming that the employee traits needed for job success can be reliably identified and measured. From the case study it is clear that employee traits or skills are not being identified properly because of factors like being labeled as discriminatory etc.

Since the MBO method instead of assuming traits it concentrates on actual outcomes such problems can be eliminated. Furthermore, according to MBO approach if an employee meets or exceeds the set objectives then he or she is said to have shown an acceptable level of performance. Therefore, the employees would be judged on real outcomes and not on their potential or talent for success. Moreover, their rewards are not tied to someone else’s subjective opinion of their abilities. Lastly, by implementing MBO approach it would be possible for the organization to directly observe the results of the employees.

Where results are not quite good, as in the case of Ms Catherine, then corrective measures can be taken with sufficient evidence Even though MBO approach has several advantages but it has few disadvantages as well. The MBO approach can lead to unrealistic expectations from the employee about what can and cannot be reasonably accomplished. However, this disadvantage can be minimized by making sure that there is frank and honest communication between a supervisor and his subordinates. Bibliography Archer North, 2002, Performance appraisal, http://www. performance-appraisal.com (accessed 17th Dec 2008)

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Performance Management is a process for establishing a shared understanding about what is to be achieved and how it is to be achieved. It is an approach to managing people that increases the probability of achieving success. In regards to the definition, Chick-Fil-A has a consistent and calibrated performance management process. They have been focusing on how to develop enough leaders, fast enough to create healthy growth. Leadership is the main part of the company’s success formula.

They have a do-it-yourself leadership development culture. First of all they defined leadership at Chick-fil-A. They interviewed leaders within the company. After discussions they realized they needed more information. They decided to supplement their internal interviews with a survey of global best practices. As final part of process they read 200 books on leadership. They had a picture of leadership definition which is similar to iceberg. According to this model, like iceberg’s 90 percent is underwater, leadership character is hard to see. 0 percent is represents the skills of leaders. And they want to combine leadership and characteristic skills. They have seen character is 90 percent of what makes a leader. They want to do their best to select men and women of character and focus on helping them develop their skills as leaders. After that, they identified best leader skills. These are;

1. See the future: It is the vision skill, ability to improve business for future.
2. Engage and developed others: They want managers reach and develop their employee’s potential.
3. Reinvent continuously: It means that the leader is the catalyst for continuous improvement and innovation. It involves the leader’s continued growth and development.
4. Value result and relationship: They agree the idea that results are critical. But also they believe that results alone not sufficient. They want to maintain tension between results and relationship.
5. Embody the values: The leaders that know their values, share their values and live their values earn the trust of people. Their actions become an important shaping tool in the culture.

As a result of definition of leadership and defining the skills that a leader should has, their goal is to select the right people, provide them the skills they need, and challenge them to guard their motives. In addition to performance management process, Chick-fil-A has successful business practices. They escaped the effects of recession well. One of the key factors that they were not affected by recession is the ability to absorb and pollinate great ideas. They could find very useful but cost nothing ideas. They have been always trying new things and experiments.

As an example, he mentions the idea of inviting the first 100 customers who come in when they opened a new store to eat at Chick-fil-A for a year. That created millions and millions of dollars worth of publicity for Chick-fil-A. Besides that, they have a very rigorous hiring process. They are looking for competence, character, and chemistry. Competence is the knowledge and skills to do the job. As mentioned before, in the evaluation of character, moral choices and decisions are very important. In chemistry, they are looking for the ability to inspire, excite, and motivate other people.

The company has a 97 percent retention rate. They have free food, free fitness center with hot showers, towels and child care center. When an employee has a problem, they try to help and got him or her into a rehab program. They influence on people’s life. They do a review annually with their executives committee. Everyone has a performance assessment. They look at fast trackers and people who need extra mentoring to be sure that they are developing them at the right rate. They change with changes. They saw a big shift in 1990s and they simulated what the whole operation would be like. It helps them to be ready for changes.

Innovation is a very important topic for them. They are getting ready to open an innovation laboratory. They want everyone to be a part of the innovation process. To improve customer service, they had conversations with people outside their industry. When customers pay them $6, they get what they really want and they feel good about the transaction. And relationship follows the service. Also they see social media as leveraging influence. In conclusion, their corporate purpose is glorifying God by being a faithful steward. The long view and the purpose of this whole enterprise is to positively impact people’s lives.